The company, formed late last year, has already had a hammering with a 65 per cent plummet in its share price, has lost its CEO and reappraised some of its business operations. Now an unfriendly takeover bid is getting heated.
ASG, now headed by former Mitsubishi Motors boss Tom Phillips after founder Tanya Mason left the parts and accessories company in May, is pushing back on a bid for all its shares launched by rival parts group AMA Group Ltd.
AMA values ASG at 35 cents a share – a far cry from its $1 a share listing in December 2016 – but ASG slumped to 26 cents a share in April and is now bouncing around 36 cents a share.
The slide by ASG is reflective of a fickle automotive market and an unsettled economy which is at odds with the booming sales of SUV vehicles. ASG’s problems may be more to do with customers either not needing its specialised services and equipment, or are drawn to more public companies such as the national’s largest and geographically diverse rival, ARB Ltd.
With AMA approaching with wallets drawn in the background, ASG is fighting back. It has this week launched a shareholder loyalty card that gives a 10 per cent discount at all ASG’s retail outlets and through its phone orders.
It has also sponsoring a series of the 4WD television show, LowRange, that highlights the fit-out to the Toyota LandCruiser of Ernie Dingo and dubbed Blu Truk.
The fit-out includes all components available through ASG’s businesses. The company has also kitted out the ‘ROO2’ LandCruiser owned by ASG executive Glenn Hadden, again showcasing the products available through the group.
Meanwhile, of the eight businesses that ASG bought and folded into the company that was listed in late December, 2016, five were “tracking in line with management expectations”, the earnings update said.
It previously estimated that the second half of the 2017 financial year would have revenue of $21.5 million and earnings before interest and tax of $3.3 million.
Those figures were revised on April 26 to $15-$16.5 million and $8-900,00 respectively.
In the background is AMA that said it will continue to offer to buy all shares at 35c a share until July 7.
By Neil Dowling
Ernie Dingo
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